Closed-loop supply chain considering environmental investment and pollutants emissions

Due to the increase in the importance of the environmental concerns, organisations always seek for solutions to reduce pollutant emission, obtain the necessary environmental certificates and improve their social image. In this regard, eco-label and environmental investment are amongst the solutions of the environmental protections. The aim of this paper is to present a mixed integer model for a closed-loop supply chain (CLSC) so that the eco-label of the product is identified, and the effects of recycling centre establishment and the environmental investment are studied. In this paper, the eco-label of the products is calculated by considering all of the activities through the supply chain according to life cycle analysis (LCA) method. The results of the study show the positive effect of the recycling centre establishment and the environmental investment on economic and environmental performance of the supply chain even though the environmental constraints are not imposed.